India’s edible oil stocks fall to five-year low on weak palm oil imports
India’s edible oil stocks fell to a five-year low of 1.35 million tonnes on May 1, driven by a 24.3% drop in palm oil imports in April to their lowest level in four years. Despite low stocks, domestic supplies remain stable due to active mustard seed crushing. Rising edible oil inflation hit 17.4% in April 2025.
Edible oil stocks in India dropped to a five-year low of 1.35M tonnes on 1 May due to a sharp drop in palm oil imports in April, which fell to their lowest level in four years, Business Standard reported citing data from the Solvent Extractors Association of India (SEA).
The last time India recorded lower stocks was on 1 May 2020, when it had stocks of around 0.91 tonnes, the 14 May report said.
Reduced stock levels could lead to an increase in Indian imports of palm and soyabean oils in the coming months, supporting Malaysian palm oil prices and US soyabean oil futures, Reuters wrote.
At 321,446 tonnes, Indian palm oil imports in April fell by 24.29% compared to the previous month, the SEA said.
“Low stocks do not mean that edible oil supplies are inadequate in the country. Stocks and imports have dropped as mustard seed crushing is in full swing in the country, which is why domestic supplies are good,” SEA executive director BV Mehta was quoted as saying.
Imports of refined edible oils from Nepal of around 60,000-70,000 tonnes/month had also affected overall imports and stock volumes, Mehta added.
India’s low stocks and imports came against a backdrop of edible oil inflation, with prices soaring to 17.4% in April 2025 as measured by the Consumer Price Index (CPI), marking the sixth successive month of double-digit inflation – a pace not seen since March 2022, when the Russia-Ukraine conflict had just begun, the report said.
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Source : OFI
